Premium products are the products that are higher level of quality and price point is higher compared to the others products.
Besides that, the user that who own and uses premium products convey a sense of status, wealth, and exclusivity because of the higher price of the product.
Is the high net worth individual willing to buy a premium item from a brand that is also available and pitched at babies at lower tiered cities?
Keeping it at Australian made will create a solid brand recognition in a premium market with unlimited potential with the right Marketing.
Especially after news splashed across the front page in Australia that even Australian babies missing out on the formula.
“Out of stock” signs in the Australian supermarket, limited quantity allowed per order and a flood of complaints about shortages published daily in the local news and on social media only works to make baby formula become more popular among Chinese buyers.
Face (status) is everything for Chinese people.
And having a bottle of A2M for your baby is a status symbol.
2nd challenges will be fighting for a spot in the already crowed space and combat counterfeit.
Due to the large market size of infant formula in China, most of the producers don’t deal with customers directly. Large producers usually have more than 10 large wholesalers to cover their countrywide distribution.
Each wholesaler normally looks after one major province and then distributes the products to its retailers in each city. It’s not uncommon to see multiple layers of wholesalers before the products reach the retailers and finally the consumers.
The large distributional net brings the benefits of large coverage for producers but in the meantime also the difficulties of monitoring. Counterfeits can take off at any stage of the chain.
These counterfeits and dodgy resellers destroy the reputations of domestic brands.
How is Bubs going to stand out from other formula in that space and stop counterfeit?
(20min delay)